G-7 Says Economic Outlook Has `Weakened,' Warns on `Sharp' Currency Swings

[Purveyor]

Source: Bloomberg News

April 11 (Bloomberg) -- Finance chiefs from the Group of Seven nations said the global economic slowdown may worsen amid an ``entrenched'' credit squeeze and signaled concern about the dollar's slide.

``Since our last meeting, there have been at times sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability,'' the G-7 said in a statement in Washington today.

Finance ministers and central bankers meeting in Washington downgraded their outlook for the world economy from that of just two months ago, blaming the U.S. housing recession, credit- market turmoil, high commodity prices and inflation pressures.

``They're trying to discreetly throw a lifeline to the dollar,'' said Sophia Drossos, a currency strategist at Morgan Stanley in New York, who used to help manage the Federal Reserve's foreign-exchange holdings. ``Had they not said anything, the dollar would have resumed its sell-off. This acknowledges there has been increased volatility.''

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`Entrenched' Turmoil

``The turmoil in global financial markets remains entrenched and more protracted than we had anticipated,'' the officials also said in their statement. ``Near-term global economic prospects have weakened.''



Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aGh_H2lhPgOc&refer=us

[whistle]

1. This is what the G-7 apparently wants, at least the power elite in the G-7

...that is the G-7 fascist power elite

[paparush]

2. This is akin to saying that the Titanic got "slightly moist" after hitting the iceberg....

[Kip Humphrey]

3. How are they going to compete with the FED printing all those extra greenbacks?